CFTC Charges DRW with Price Manipulation of Interest Rate Contract

The CFTC filed a civil enforcement action against Donald R. Wilson and his company, DRW Investments, LLC ("DRW"), with unlawfully manipulating and attempting to manipulate the price of a futures contract. The Complaint alleges that Mr. Wilson and DRW manipulated the IDEX USD Three-Month Interest Rate Swap Futures Contract ("Contract") from at least January 2011 to August 2011. The CFTC asserts that Mr. Wilson and DRW submitted "false" bids, in various prescribed time windows, that DRW knew could not be accepted for the purpose of manipulating the value of the Contract, whose value was based off of bids in those time windows . The CFTC analogized DRW's bidding process to "banging the close."

See: CFTC Complaint; CFTC Press Release.